From mimsy!cs.umd.edu!news.umbc.edu!europa.eng.gtefsd.com!uunet!digex.net!digex.net!not-for-mail Fri Jan 14 10:51:19 EST 1994
In article , wrote:
>
>Reposting since I didn't get any responses first time..
>
>Hello netters,
>
>Could someone please give me advice on following issues -
>
>1. While on H1B visa with a company, can one own a business?
>How about just being a partner in another company?
>
No you cannot. In fact, you cannot even be an independent contractor.
You have to be an employee.
>2. Assuming an H1B holder can own a business or become a partner,
>how do you justify the income earned through profits from the
>business? Does it have anything to do with the current H1B visa?
>If not, under what status are you earning that income?
>
See above.
>3. Does one need to get a special permit to own a business or
>become one of the partners, if the answer to first question is No?
You need a green card or E visa (not available for India) or an investor
visa (also a green card).
--
-----------------------------------------------------------------
LAW OFFICES OF RAJIV S. KHANNA Voice: (202) 466-2113
1129 20th Street, NW, Suite 400 Email: rskhanna@access.digex.net
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From mimsy!cs.umd.edu!news.umbc.edu!europa.eng.gtefsd.com!howland.reston.ans.net!news.intercon.com!panix!not-for-mail Fri Jan 14 10:51:49 EST 1994
R.>>1. While on H1B visa with a company, can one own a business?
R.>>How about just being a partner in another company?
R.>>
R.>No you cannot. In fact, you cannot even be an independent
R.>contractor. You have to be an employee.
R.>
This is nonsense. I can own a US business if I am a foreign national who
has never entered (or never wants to enter) the US. It *is* true that I
can't use my ownership of a US business to validate my H1B status but that
doesn't mean I can't *own* a business while working (full time) for
someone else on an H1B.
Additionally, I'm sure a number of immigrants *have* gotten H1B visas
based on employment with companies in which they have a beneficial
interest but this can't be publicly recommended.
DCF
--- WinQwk 2.0b#1165
From mimsy!cs.umd.edu!news.umbc.edu!europa.eng.gtefsd.com!howland.reston.ans.net!cs.utexas.edu!geraldo.cc.utexas.edu!portal.austin.ibm.com!awdprime.austin.ibm.com!telang Thu Jan 20 13:58:44 EST 1994
I spoke with Mr. Khanna who initially said that this is not allowed
and according to him, it's not allowed BECAUSE you are on H1 and it
could be possible if you were not present in country at all. While
I haven't had a chance to confirm this from any other lawyer, what
I fail to understand is that if there's nothing to stop you from
investing as a sleeping partner from the point of view that you are
a foreigner, how could your current H1B with some other employer stop
you from doing that, while it does allow you get another H1B with
another employer at the same time? May be there's something that
I'm missing here..
Jitu
---------------------------------------------------------------
Jitendra Telang : : 512-823-8179
AIX Support Center, IBM. : : telang@austin.ibm.com
Disclaimer: These are my opinions, not IBM's.
---------------------------------------------------------------
--
---------------------------------------------------------------
Jitendra Telang : : 512-823-8179
From mimsy!cs.umd.edu!news.umbc.edu!europa.eng.gtefsd.com!uunet!digex.net!digex.net!not-for-mail Thu Jan 20 14:00:18 EST 1994
In article , wrote:
>
>I spoke with Mr. Khanna who initially said that this is not allowed
>and according to him, it's not allowed BECAUSE you are on H1 and it
>could be possible if you were not present in country at all. While
>I haven't had a chance to confirm this from any other lawyer, what
>I fail to understand is that if there's nothing to stop you from
>investing as a sleeping partner from the point of view that you are
>a foreigner, how could your current H1B with some other employer stop
>you from doing that, while it does allow you get another H1B with
>another employer at the same time? May be there's something that
>I'm missing here..
>
H-1 status permits
ONLY an employment relationship - not partnership, not
independent contracting. Thus, not being able to be a partner is a
disability stemming from H visa, NOT from you being an alien. You may
hold more than one H visas simultaneously for different employers. But,
in all of these, you must be an employee. This is my undersatnding of
the law. Feel free to enlighten me if anyone knows something I do not.
And plaese, keep your comments confined to what is LEGALLY permissible.
--
-----------------------------------------------------------------
LAW OFFICES OF RAJIV S. KHANNA Voice: (202) 466-2113
1129 20th Street, NW, Suite 400 Email: rskhanna@access.digex.net
Washington, DC 20036-3403 rajiv.khanna@permanet.org
From: gumby@Cygnus.COM (David V. Henkel-Wallace)
Newsgroups: alt.visa.us
Subject: starting business with "wrong" visa (was: Starting a business with an H-1)
Message-ID:
Date: 24 Oct 92 13:13:50 GMT
Date: Fri, 23 Oct 1992 20:57:51 GMT
From: george@sedona.sps.mot.com (Binay George)
Does anybody have information about starting a small business with
an H-1 or F-1 visa in this country? Do you have to be a permanent
resident? Is it possible if a partner is a permanent resident /
citizen?
This is an interesting question which I looked into two years agoo.
Note that I'm not a lawyer so my answers could be 1> out of date and
2> totally wrong! With that disclaimer out of the way...
There are two different bodies of law to consider. The first is
corporate law, the second immigration law.
Corporate Law
In the US, corporations (except some banks and specialised entities)
are created under state laws, rather than nationally. Different
states have different laws; for the one I investigated (California)
immigration status made no difference, (except note below). The law
simply diesn't address the issue -- anyone can start a company if they
so see fit.
The federal tax dept (IRS) does recognise two ordinary forms of a
for-profit corporation (some states have other kinds too): "C" corp
(ordinary limited-liability share corporation) and "S" corp (a special
kind of partnership)corporation that acts like a partnership, which
can be ideal for small corps). Unfortunately for you, all
shareholders of an "S" corp must be US citizens or permanent
residents. I don't remember if this was a CA regulation or a federal
one.
Also note that you can start a "partnership" (this is what law firms
look like) -- it's not technically a "corporation" but it is another
form of what in other countries is covered by buisiness law. I don't
remember seeing any visa restrictions on this, but check if you are
considering it. I wasn't interested in starting a partnership, so
didn't investigate this too hard.
By the way, watch out for the following screw: I have a green card,
but my wife does not, Since California is a community property state,
I cannot own stock in an S-corp, since she and I own everything
jointly, and then the s corp would have a non-resident shareholder.
Also, note that unlike most countries, you don't have to tell the
government when you go into business (though some towns may require
business licenses for your property, and some controlled monopoly
trades like doctors need licenses). This can be either a good thing
or a screw if you're not careful.
Immigration Law
There's no law prohibiting aliens from owning corporations (except for
certiain industries, like fighter aircraft!). But likewise, there's
no special way that owning a corporation can get you a visa, (unless
you invest a _lot_ of money, and get an investor's visa). Also, look
at your visa application: you cannot draw a salary (except, for
instance under an H-1, from your sponsoring employer).
Note that if you have a partner who can otherwise be in the country,
you and s/he could start the corporation, and then the corporation
could sponsor _you_ for an H-1 I suppose. Or you could start the
company in your spare time, and not draw a salary from it. But note
that if you quit your employer to work at your new company, you'll
have to get a new visa, with your own company sponsoring you.
good luck,
g